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Item 1A. Risk Factors

2022-08-09 compared with 2022-05-10 · 48 added, 30 removed, 1 unchanged (99% of the section changed)

Factors that could materially and adversely affect our business, financial condition

and/or results of operations are described in the 2021 Form 10-K.

Additional risk factors not presently known to us or that we currently

deem immaterial may also impair our business, financial condition and/or results of operations.

As of the date of this Quarterly Report

on Form 10-Q, there have been no material changes to the risk factors disclosed in our 2021 Form 10-K, other than the inflation rate risk

discussed below.

Factors that could materially and adversely affect our business, financial

condition and/or results of operations are described in the 2021 Form 10-K.

Additional risk factors not presently known to us or that

we currently deem immaterial may also impair our business, financial condition and/or results of operations.

As of the date of this Quarterly

Report on Form 10-Q, there have been no material changes to the risk factors disclosed in our 2021 Form 10-K, other than the inflation

rate risk and share repurchase risk discussed below.

Inflation Rate Risk

Beginning in April 2021, the inflation rate in the US, as measured by the Consumer

Price Index (CPI) has steadily increased.

In 2019, the inflation rate was approximately 1.8%, while it dropped to approximately 1.2% in

These data are reported monthly, showing year-over-year changes in prices across a basket of goods and services.

For 2021, inflation

increased from the 1.4%-2.6% range in the first quarter, to 4.2% in April, and was in the 5.0% range through the end of the third quarter

of 2021, before increasing to the 6.0%-7.0% range in the fourth quarter.

For the full year, the inflation rate was 4.7% in 2021, the highest

annual rate since the 5.4% rate recorded in 1990.

The inflation rate continued to increase throughout the first quarter of 2022, reaching

approximately 8.5% in March 2022.

The increased inflation rate has had an impact on the Company’s expenses in several areas, including

wages, fuel and medical and other supplies.

This has compressed gross profit margins, as the Company is generally unable to pass these

higher costs on to its customers, particularly in the short term.

Looking to the rest of 2022, we anticipate a moderation of the inflation

rate when compared to the first quarter of the year, but expect that inflation will remain above the levels seen in the previous 10 years,

when the annual inflation rate ranged from 0.1% to 2.4%.

If inflation is above the levels that the Company anticipates in 2022, gross

margins could be below plan and our business, operating results and cash flows may be adversely affected.

Unregistered Sales of Equity Securities and Use of Proceeds

Defaults Upon Senior Securities

Mine Safety Disclosures

Beginning in April 2021, the

inflation rate in the US, as measured by the Consumer Price Index (CPI) has steadily increased.

In 2019, the inflation rate was approximately

1.8%, while it dropped to approximately 1.2% in 2020.

These data are reported monthly, showing year-over-year changes in prices across

a basket of goods and services.

For 2021, inflation increased from the 1.4%-2.6% range in the first quarter, to 4.2% in April, and was

in the 5.0% range through the end of the third quarter of 2021, before increasing to the 6.0%-7.0% range in the fourth quarter.

full year, the inflation rate was 4.7% in 2021, the highest annual rate since the 5.4% rate recorded in 1990.

The inflation rate continued

to increase throughout the second quarter of 2022, reaching approximately 9.1% in June 2022.

The increased inflation rate has had an impact

on the Company’s expenses in several areas, including wages, fuel and medical and other supplies.

This has compressed gross profit

margins, as the Company is generally unable to pass these higher costs on to its customers, particularly in the short term.

the rest of 2022, we anticipate a moderation of the inflation rate when compared to the first quarter of the year but expect that inflation

will remain above the levels seen in the previous 10 years, when the annual inflation rate ranged from 0.1% to 2.4%.

If inflation is above

the levels that the Company anticipates in 2022, gross margins could be below plan.

Share Repurchase Program Risk

We have adopted a share repurchase program to repurchase shares of

our common stock;

however, any future decisions to reduce or discontinue repurchasing our common stock pursuant to our share repurchase

program could cause the market price for our common stock to decline.

Although our Board has authorized the share repurchase program, any

determination to execute our share repurchase program will be subject to, among other things, our financial position and results of operations,

available cash and cash flow, capital requirements and other factors, as well as our Board’s continuing determination that the repurchase

program is in the best interests of our stockholders and is in compliance with all laws and agreements applicable to the repurchase program.

Our share repurchase program does not obligate us to acquire any common stock.

If we fail to meet any expectations related to share repurchases,

the market price of our common stock could decline, and could have a material adverse impact on investor confidence.

Additionally, price

volatility of our common stock over a given period may cause the average price at which we repurchase our common stock to exceed the stock’s

market price at a given point in time.

We may further increase or decrease the amount

of repurchases of our common stock in the future.

Any reduction or discontinuance by us of repurchases of our common stock pursuant to

our current share repurchase program could cause the market price of our common stock to decline.

Moreover, in the event repurchases of

our common stock are reduced or discontinued, our failure or inability to resume repurchasing common stock at historical levels could

result in a lower market valuation of our common stock.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors